The terminal tool window is just a terminal emulator for a command shell. In case of Windows that shell defaults to cmd, which is completely independent of the IDE settings. So in order for that to work you must have git in PATH environment variable.

You can do it this way:

Go to Control panel/System/Advanced System Settings

Click Environment variables

Select PATH and click Edit

Append following string at the end of the variable value: ;C:\Program Files (x86)\Git\bin

The semicolon is important, because individual PATH entries are delimited by it

The path to git bin directory might be different on your system

This works on Windows 8.1. It might be a little different on older versions of Window. Just in case here is a link which covers this procedure on more Windows versions.

Or you could set Git Bash as the shell for the Terminal tool window. Personally I prefer this approach on Windows computers. You can do it by going into Settings/Terminal and setting Shell path to something like "C:\Program Files (x86)\Git\bin\sh.exe" --login -i (this might be different on your computer).

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